Changes

===State and Local Policy===

====General Policy====

*The '''Certified Capital Company (CAPCO)''' program was first introduced in Louisiana in 1983 but has since been put into action in several other states such as Colorado, Florida, Missouri, New York, Texas and Wisconsin. This program was created to encourage venture capital funding at the state level. The CAPCO programs receive insurance tax credits from the state government which they proceed to sell to insurance companies for capital. The CAPCO programs then use this capital as venture capital firms to invest in start-up companies. Insurance companies receive tax credits and then capital at the end of the program to create an overall positive impact for the state's economic and entrepreneurial ecosystem.

*The '''Fund of Funds''' program was first introduced in Oklahoma in the mid 1990s before spreading to several other mid-western states like Arkansas, Ohio, Michigan, and Iowa as well as in Utah. This program has the state put funds into venture capital and private equity funds that are committed to both investing in qualified companies as well as in working with small businesses in the state. This fund is financed through methods such a bond markets investments and third-party lenders. Though risks are lessened through the avoidance of directs stock investments, the downfall often involved with these programs lies in the fact that the investment money is given through state tax credits; therefore, if investments fail, taxpayers are victimized.

*State and local governments often create a link between new businesses and research universities in the area.